And there will be no leaseholders on the board of LEASE
The new chair of the controversial quango the Leasehold Advisory Service declined an invitation to endorse no-monetary value ground rents on BBC R4’s You and Yours today.
Instead, Wanda Goldwag said only that contracts should be “fair”.
Former Communities Secretary Sajid Javid undertook to reduce to “as low as zero” new ground rents – which Sir Peter Bottomley earlier reminded the programme are for no service whatsoever, and should stop.
The government has since floated the idea of £10 ground rents, and will maintain them in retirement leases.
At present, LEASE’s publicly stated view is that ground rents above 0.1% of sale price are onerous (which, in fact, the vast majority of retirement housing ground rents are).
Sir Peter told You and Yours: “[The Leasehold Advisory Service] is one of the very few organisations that doesn’t put in its annual report things that it is noticing and which government should put right.
“They could advise the government there is no need for a ground rent at all as it buys you nothing and the sooner they go the better.”
You and Yours – Brexit Stockpiling; Leasehold Hope; Ditching Alcohol – BBC Sounds
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The call for zero ground rents was echoed by three separate lawyers at the Communities Select Committee last week.
The item also included an interview with leaseholder, Lisa Chapple, who expressed strong criticism of the Leasehold Advisory Service, which costs just under £2 million a year.
“They did not help us at all and I think that they failed on all levels. They advised nothing at all and tried to pass everything back to me and that it was my fault for not raising these issues at the point of sale.
“They did not seem to understand that this [doubling ground rents] was affecting thousands of people.
“I’ve spoken to people on my estate and around the country, where we have had demonstrations, and we do not have any faith in it [Leasehold Advisory Service].
“It appears to be more for investors and freeholders rather than leaseholders.”
Miss Goldwag responded:
“I give my absolute assurance that from now only LEASE will only be acting in the interests of the leaseholders.
“We only have one set of customers, which are the leaseholders.
“It is really worrying that people are being told that it is your fault, and that you should read the lease.”
Sir Peter repeated his calls, over several years now, that leaseholder representatives should be on the board of LEASE.
“I do not believe the LEASE can seriously go on for a long time without having one or two leaseholders on the board, or one to two people who have experience of advising them.
“The idea that you can have a service like LEASE without having anybody who has been through the mill of being a residential leaseholder strikes me as odd.”
Miss Goldwag was asked whether she intended to have anyone directly affected by leasehold on the board.
“No, I don’t,” she replied. “That is not how government bodies work. We have non-execs to make sure that the service is excellent.
“But I want to say that what Sir Peter Bottomley and his colleagues have done has been excellent … But my job is to ensure that while they campaign I provide the information and data of the trends and issues that people are facing.
Miss Goldwag said that she is eager to share the “every single piece of information that we have collected in the last five years about what people are complaining about” and give it to “government, the civil servants and the very, very good campaigning groups we have in this country”.
You and Yours presenter Peter White asked whether LEASE’S reputation is so tarnished that it would be better for LEASE’s funding to be shared out among charities such as the Leasehold Knowledge Partnership or Citizens Advice.
“It is not for me to tell government where it should spend its money. What I am going to try to ensure is that the money that LEASE does receive we use very, very effectively.”
Historical footnote: The You and Yours programme also included the astonishing interview with former LEASE chair Roger Southam saying it was not the taxpayer-funded quango’s job to alert ministers to the doubling ground rent / leasehold houses scandal.
Not the job of LEASE to warn ministers of leasehold houses scandal, Roger Southam tells BBC
Related posts:
LEASE chair Roger Southam launched complaint to Parliamentary Standards Commissioner against Sir Peter Bottomley and Jim Fitzpatrick (and LKP, naturally enough)
Justin Madders MP demands LEASE chair has ‘no business interests in the leasehold sector’
New interim chair for troubled quango LEASE
DCLG rejects complaint over LEASE chair Roger Southam, who pledged to ‘maximise ground rent opportunities’ for freeholders
‘Peppercorn’ ground rents on Help To Buy properties … from next year
” We have only one set of customers, which are the leaseholders” says Miss Goldwag.
Prove it! Immediately halt the paid for “awards ceremonies” that Lease still relies on for so much of their income.
Not only does it impact on Lease’s impartiality, but many of the “winners” use the “credibility” of their wins to promulgate their improper activities.
And if Miss Goldwag truly wants to sort the mess that a compromised Lease has underscored, for what reason would she not want to benefit from those that have experienced the horrors of leasehold and have gained so much knowledge in the sector and ask representatives from LKP, NLC to come on board?
Typo time! i meant to write “Halt the seminars and the tacit support for ARMA that still relies on for so much of their income.
Miss Goldwag seems to be part of the establishment and refuses to have any Leaseholders in the LEASE Organisation paid for out of Tax Payers hard earned money.
LEASE still uses Commercial Customers to supply funds for the QUANGO to operate as the Government instructed them to use Private Organisations instead of proper funding and in lacked guidance for how they are supposed to operate for the Leaseholder.
The organisation which is called LEASE not FREEHOLD should have Leaseholders on the board along with Sebastian and or Martin but alas they have not been considered.
The Award Ceremonies are self serving by the Freeholders/Landlords, as anyone of the posters ever voted for Firstport Retirement?
These ceremonies held by LEASE are sponsored by some of the poorest MA that we have in GB, they rely on the elderly not to rock boats.
Miss Goldwag has begun where the previous incumbent left off and does nothing to enhance the reputation of the Leasehold Industry, other than to drag it further down and show the same interest the Government has shown.
LEASE could show some real positivity by using LKP or NCL or even our friend Michael Epstein who is a true champion of the Leaseholder. GO Michael.
Indeed a ground rent is for no service at all and A review of the lease will show that the rent is not to be applied in the provision of any services
Therefore it is a financial burden on the property which needs to be considered so any offer for the lease takes into account the negative nature of that commitment . As I have said countless times it’s value needs to be valued using a prescribed discount rate set by the government
If rent s were very large I am sure they would be considered more carefully prior to purchase so the offer correctly values the rent – however small rents are accepted without proper consideration and that is where the devil gets his foot in the door
Ground rents do have a place going forward but only if the value to the freeholder going forward is clearly shown and valued correctly
Stephen why then is Ground Rent included in the Lease Extension Formulae and companies purchase Ground Rent Future Finance when purchasing the Freehold?
It has been posted that Ground Rents are collected by Landlords and or their agents for no Management Purpose at all except for Administration and the value used over the long term for borrowing money as it is an asset which was set up originally for contract purposes purely for this purpose.
Stephen/Michael,
I have applied for a Lease Extension (LE) ( 90 years) this week and will be required to pay £125 for the privilege.
Checked out LEASE WEBSITE regarding LE using their Formulae Check.
I inputted the boxes as requested as follows.
* Not in London was the first box ticked
* Value of Flat = £100,000
* Ground Rent Payable £48
* Date end of Lease 2086
The calculation was to include the Marriage Value
The Figure for the LE was £2,000 plus Landlord Costs.
Spoke to solicitor who will confirm the correct LE Fees to pay.
Sorry friends went back and checked the calculation as couldn’t understand how so low, then noted a zero missing making the value of flat only £10k.
This whilst not correct, it does reflect the facts as inputted by me, so if a flat worth only £10k would have to pay £2k plus cost we could be talking 25% to 30% of a value for a Lease Extension?
No doubt some one will be able to inform me and others what it should be.
Again Sorry
As Ground Rent (GR) portfolios in certain cases have been and are being purchased criminally (amended Housing Act 1996) through ignoring existing qualifying leaseholders right of first refusal, and lease extensions then “offered” with a new GR set at a higher level linked to RPI in place of the statutory 90 yr addition with GR reducing to zero:
What then, Miss Goldwag ?
I hate to be negative but in the recent email newsletter from LEASE I did go and have a look around on their website . I was dismayed to see there are still ‘questions from Freeholder/ landlords’ and helpful answers from LEASE, I thought I heard Wanda say LEASE would be only for leaseholders from now on! So what’s going on here?
Many landlords/freeholders are lessee controlled companies where he lessees have bought the freehold and need some help as they will not have the resources of professional freeholders
Stephen you say many landlords/freeholders are lessee controlled companies
Please Define.
You continue to say where he lessees have bought the freehold are you only saying men purchase freeholds or something else? You also say they may need some help as they will not have the resources of Professional Freeholders?
Peverel and now Firstport are Professional Freeholders disguised under the Landlord Name with massive recourses, have failed and unable to manage within the rules.
The ability to managed whole areas as I did in the late 1970/80s myself, the failure by Professional Freeholders who have the recourses, do not have the commitment or qualification or the proper personnel to do a pucker job.
There are many small block with perhaps a handful of lessees who have purchased the freehold amongst themselves either under the Act or by negotiation
In many cases they may not have the resources to engage experts when problems on leasehold management arises and that is where LEASE should step in and help
I do not have any particular problem with freeholder/landlords being offered advice by Lease.. freeholders/landlords are not only investment vehicles based offshore. some of them could have been left a property and want to ensure they are acting in a proper manner.
What I do have an issue with, is the clear bias against leaseholders as personified by the actions of former CEO Roger Southam who clearly was working in the interests of freeholders..
At present there is much understandable lack of faith in Lease. This is not helped by the refusal to allow concerned leaseholders on to the board of Lease..
I can only surmise that it still a case of “We know best, can’t allow the peasants to get involved”
Leasehold Advisory Service, Last published figures:
Telephone Inquiries DOWN 21%
Written Inquiries DOWN 26%
Tribunal Inquiries DOWN 83%
Something has gone a little wrong with Lease?
I believe this is since the name had been changed to LEAST as it is represented by the gentry with no peasants required, could it be?
So the government think ground rents above 0.1% on retirement homes is okay and therefore creating a two tier system after legislation. Obviously pensioners are seen as cash cows!
With Wanda not supporting will go from Goldwag to Scallywag?
And so it goes on. There will be progress, perhaps even significant progress, once the Law Commission have reported back to government. But it will be many more years before leasehold is abolished, and all the issues relating to leasehold and managing agents are resolved.
The problem isn’t leasehold itself, the problem lies with certain types of businessmen whose idea of enterprise is in reality the worst kind of exploitation. Resolve leasehold and things relating to leasehold, the psychopaths will move on to other areas of enterprise/exploitation. with government acquiescence – even approval. .
Campaigning is always good, but campaigning never changes the nature of things.
Sorry David, The problem IS leasehold!
It is leasehold that provides the opportunities for others to exploit leaseholders.
If the leaseholders also became the freeholders (which is basically what is meant by Commonhold) than leaseholders as freeholders would have no need to exploit themselves..
No system will ever be perfect. But some systems are less perfect than others!
Leasehold has to GO!
Michael,
LKP is campaigning for the abolition of leasehold (rightly so), and for houses to be sold freehold, flats to be sold commonhold. I support that 100%, 1000% even.
But leasehold is not the only evil in modern day UK, there are many more, and most all are created by amoral businessmen whose trade is exploitation. Rid this country of leasehold, the amoral businessmen remain – the nature of things doesn’t change, that is the point I was making.
Perhaps LKP can next campaign to change human nature, that should be easy peasy having done asunder leasehold (in due course).
David, I agree Leasehold is not the only evil in modern day UK, but since this site is called The Leasehold Knowledge Partnership, I will concentrate my efforts on this site to leasehold matters. I will leave putting the “word to right” to other websites!
Yes Michael, this site is about leasehold, forgive me for digressing. I am not as deeply affected as others by leasehold, my situation is very much small time. That affords me the luxury of not concentrating on the topic LKP is all about.
Returning to the topic, I think it was Sebastian who wrote that professionals have run rings around previous legislation. Very likely the same will happen again if legislators (government) are not inclined – which they are not – to abolish leasehold altogether.
The staying power of LKP, and its supporters, is highly impressive. I am convinced that leasehold will end one day, but two world wars eventually ended – but only after tens of millions of dead. .
Wanda Goldwag and LEASE probably view leaseholders as a bit stupid because lease agreements are of course dead simple for the average homebuyer to understand. It would really complicate matters if LEASE had leaseholders with real life experience on the Board.
It is of course always the leaseholder’s fault for signing up to a bad deal such as doubling ground rents and in a way deserve to be ripped off for being ignorant. That’s just business.